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The Fed chief has repeatedly declined to say whether he will step down when his four-year term as chair expires in May, or remain on the Fed board — something he could technically do until his tenure as a governor expires in January 2028.
As President Donald Trump and his advisers begin weighing replacements for Federal Reserve Chair Jerome Powell, they’re running into one significant complication: It’s not clear that Powell will leave the US central bank next year.
The Fed chief has repeatedly declined to say whether he will step down when his four-year term as chair expires in May, or remain on the Fed board — something he could technically do until his tenure as a governor expires in January 2028. The prospect of Powell remaining at the central bank has prompted administration officials to begin planning for multiple scenarios for his replacement, as Trump seeks a chair who will support his economic agenda.
The president said Tuesday he has “two or three top choices” to potentially succeed Powell, but declined to name them. In recent weeks, Trump’s advisers have even discussed with him the possibility that Scott Bessent could simultaneously serve as Treasury secretary and Fed chair, according to people familiar with the matter. Such a move would be unprecedented since the two roles were separated in 1935, in legislation aimed at giving the Fed a measure of independence.
As the selection for a new Fed leader unfolds, the president has made clear the next chair must be “somebody that wants to cut rates.” Powell has led his colleagues in standing pat this year, saying they need more certainty that Trump’s tariffs won’t trigger a persistent rise in inflation.
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When asked about his tenure Tuesday in a panel discussion with fellow central bankers from around the world, Powell said, “I have nothing for you on that.”
